Tax PlanningTax Planning is resorted to maximize the cash inflow and minimize the cash outflow. Since Tax is kind of cost, the reduction of cost shall increase the profitability. Every prudent person to maximize the Return, shall increase the profits by resorting to Tax Planning. The Indian Income Tax Act allows for certain deductions which can be claimed to save tax at the time of filing of Income Tax Return by all classes of Taxpayers (i.e. Salaried Individuals, Professionals, businessman etc).
Best Tax Saving Investment Options in India :
• Public Provident Fund
• ELSS Tax Saving Mutual Funds
• Tax Saving Bank FD Schemes
• Senior Citizen Saving Schemes (SCSS)
• Rajiv Gandhi Equity Saving Scheme (RGESS)
• Voluntary Provident Fund (VPF)
• New Pension Scheme (NPS)
• National Saving Certificate (NSC)
• Unit Linked Investment Plan (ULIP)
• Insurance Plans
Deductions under these categories would be subtracted from the gross total income and income tax would be levied on the balance income as per the income tax slabs in force.